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Costa Rican scandal over aid not linked to Taiwan: official

Ministry of Foreign Affairs Spokesman Henry Chen (陳銘政) yesterday said Taiwan had nothing to do with Costa Rica President Oscar Arias’ alleged misappropriation of foreign aid and stressed Taiwan was meticulous when allocating monetary aid to its allies.

“We are a country ruled by law and all foreign aid must be approved by the legislature,” said Chen, responding to an AFP report about Arias’ reported mishandling of a US$1.5 million donation Costa Rica received from the nation in 2006 before the Central American country cut its ties with Taiwan in favor of Beijing after six decades last year.

Chen said Taiwan was very careful about giving away money and Arias’ alleged scandal was “his own business.”

Arias on Sunday defended his administration from “reckless” media criticism, after US$3.5 million in housing development donations from Taiwan and a regional bank were allegedly put to other uses, an AFP report said.

“Nobody has the right to make reckless and groundless statements. Nobody has the right to doubt the propriety of a government that’s been transparent from day one,” Arias said in an opinion piece in Costa Rica’s La Nacion daily.

La Nacion last week said the office of Arias’ brother and Chief of Staff, Rodrigo Arias, paid 84 government consultants with US$2 million that had been donated by the Central American Bank for Economic Integration (BCIE).

The daily also said Costa Rican Housing Minister Fernando Zumbado paid a number of consultants out of US$1.5 million donated by the Taiwan government.

Both donations were made in 2006, and had been intended for housing projects for the needy in San Jose, the daily said.

Rodrigo Arias and Zumbado said the payouts were used to speed up the bidding process, and that since they came from public funds they did not have to be reported to the General Accounting Office of the Republic (CGR), a government watchdog.

Arias rebuked La Nacion for implying wrongdoing in the transactions.

“In the blink of an eye, some media outlets are capable of destroying somebody’s life and reputation,” he wrote. “Investigative journalism is one thing, but judging and passing sentence is quite different.”

He said there was nothing wrong with governments getting funds from international organizations such as the UN and the World Bank.

The CGR and a legislative committee said they plan to meet with BCIE legal advisers to investigate the matter.
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